Crypto-currency Trading Platform OKCoin Gets $10 Million Series A Financing Led by Ceyuan

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Chinese crypto-currency trading platform OKCoin has received around ten million dollars of Series A funding from investment institutions (Ceyuan Venture Capital, Mandra Capital, Ventures Lab) and venture capitalists (prominent angel investor Cai Wensheng, founder of e-commerce site Xiu.com Huang Jin, founder of developer community CSDN Jiang Tao, chairman of Chinese Yough Angel Investor Leader Association Yang Ning, founder of angel investor Pre-Angel Wang Lijie, founder of tech media Leiphone Lin Jun, etc.).

This round of financing was closed at the end of last year, said founder of the company Xu Mingxing, adding that the capital will be used in team construction, product development and security improvement. He Yize, vice president of OKCoin, noted that the company is in talks for Series B funding and has plans to explore overseas market.

According to data released by the company, OKCoin’s daily trading volume has reached 300,000 Bitcoins and 13 million Litecoins as of present.

Bitcoin

OKCoin recently launched a P2P lending platform to combine P2P model with Bitcoin. Users can lend idle funds, Bitcoin or Litecoin online to others to grab the interests. But the transaction is more complicated than traditional P2P lending model due to the fluctuating exchange rates between the crypto-currencies and RMB, allowing users to gain profits by having either short or long position in the digital currencies.

BTC China, another Bitcoin trading platform, secured $5 million of Series A financing from investors including LightSpeed at the end of last year.

Although venture capitalists are still willing to take bold bets on Bitcoin market, the government of several countries extended their concerns on the security issues of the virtual currency. China authorities issued a notice on Bitcoin to caution financial institutions and payments services against risks. India and Singapore also tighten their reins on the digital currency.

The collapse of Mt.Gox, once a leading Bitcoin trading platform based in Japan, worsened the concerns, since the company’s bankruptcy was caused by the loss of nearly half a billion dollars worth of digital currencies to hackers, as claimed by the company.

image credit: OKCoin